Unexpected Hard Search By Insurance Company

adamapple

I was checking my ClearScore report and noticed a hard search was carried out when I took out home insurance a few months ago. Really annoyed, was going to open a Very credit account just to benfit from their 25% discount, and was also looking to take out car finance in Feb/ March. Although my credit rating is very high, should I hold off on the Very credit check to avoid impacting the car loan? 

MorningcoffeeIV

You might want to hold off if your history is a bit ropey. Prioritise your credit needs, rather than chasing everything.

Your very high credit rating has no bearing on your applications.

Ebe_Scrooge

Did you elect to pay for your home insurance monthly, rather than in one lump sum?  If so, that will be the reason for the hard search - the insurance company are giving you a loan to pay for the year's premium (which is why it's always more expensive to pay monthly, as you're charged interest)

DullGreyGuy

Ebe_Scrooge said:
which is why it's always more expensive to pay monthly, as you're charged interest

Given some offer 0% APR then its normally more expensive to pay monthly rather than always.


As to the OP... the FCA have been looking into irresponsible lending for a few years now and whilst most of us dont consider paying insurance by installments as a form of credit the reality is that it is. Historically credit checks were more the preserve of the premium finance companies used by brokers whereas direct insurer (and some larger brokers) just took a chance knowing they could cancel the policy on default.

With the new noises coming out of the FCA then more insurers will be doing credit checks for installment plans to avoid future sanctions re irresponsible lending... sure at some point someone will say we are seeing more uninsured vehicles as those on limited means cannot afford full premiums up front and insurers say lending the premium would be deemed irresponsible. 

adamapple

MorningcoffeeIV said:

You might want to hold off if your history is a bit ropey. Prioritise your credit needs, rather than chasing everything.

Your very high credit rating has no bearing on your applications.

Not sure what you mean by "ropey", I do have credit, but I've brought it down from all time high of £20k 3 years ago to around £5k now.

I need a laptop for my work and don't want to turn away £200 discount with Very.

The insurance search was due to monthly payments, but its never happened before, if I'd known I would have paid the whole lot.

Is there a reasonably acceptable gap between hard searches, which reduces chances of impact on credit?

PaulW922

Do you know which types elf search it was? If it is an 'insurance' quote I doubt that Very or other lenders will look at it regardless.

For the record it is common for a credit search to be undertaken when a quote is given, especially for motor insurance, but this does not necessarily show up as a credit application - it is for a different reason

In any event, one search for an insurance company letting you pay by instalments is not likely to affect whether or not Very give you an account

Farfetch1

adamapple said:

MorningcoffeeIV said:

You might want to hold off if your history is a bit ropey. Prioritise your credit needs, rather than chasing everything.

Your very high credit rating has no bearing on your applications.

Not sure what you mean by "ropey", I do have credit, but I've brought it down from all time high of £20k 3 years ago to around £5k now.

I need a laptop for my work and don't want to turn away £200 discount with Very.

The insurance search was due to monthly payments, but its never happened before, if I'd known I would have paid the whole lot.

Is there a reasonably acceptable gap between hard searches, which reduces chances of impact on credit?

Anyone checking your file will see what type of credit it is for. They won't be particularly concerned by a search for insurance, they know what the crack is.